Vietnam calls for tougher measures on cryptocurrency

HANOI: Vietnam has vowed to tighten regulations on cryptocurrencies as authorities investigate an alleged multi-million-dollar fraud in the country, where digital units are traded in a shadowy and unregulated market.

Paying with cryptocurrencies is illegal in Vietnam, where they are not recognised as a legitimate tender by the central bank. However there are currently no laws explicitly banning the possession of assets such as Bitcoin and Ethereum.

Regulators have battled to gain control of cryptocurrency markets across Asia, from China to South Korea and Thailand, amid fears that Bitcoin and others, untaxable assets that are exchanged independent of governments and banks, could be used to launder money and fund criminal or terrorist networks.

A directive signed by Vietnam’s Prime Minister Nguyen Xuan Phuc on Wednesday requested to “strengthen the management of activities related to cryptocurrencies”.

It comes after a Vietnamese company, Modern Tech Jsc, was accused of scamming US$660mil (RM2.5bil) from tens of thousands of people who bought iFan and Pincoin cryptocurrencies, according to state media.

The company promised to repay clients monthly interest – and more if they could attract other customers – but has been slow to pay them back as the value of iFan and Pincoin slumps, VNExpress reported.

City authorities have asked police to investigate. — AFP